Bristol-Myers
Squibb Company (BMY ) today reported results for the fourth
quarter and full year of 2014, which were highlighted by strong global
sales for priority brands and important advances in the companys
immuno-oncology (I-O) portfolio. The company received accelerated
regulatory approval of Opdivo
in the U.S., presented encouraging clinical data for Opdivo
across several tumor types from its broad clinical program, and
announced positive results that led to the early stop of Opdivos
Phase 3 trial in squamous cell non-small cell lung cancer (NSCLC). In
addition, the company presented important clinical data for Eliquis
and daclatasvir and provided financial guidance for 2015.

"We had an excellent fourth quarter to close a strong year financially
and operationally, and made significant progress in our I-O pipeline
with the approval of Opdivo in the U.S. for patients with
advanced melanoma," said Lamberto
Andreotti, chief executive officer, Bristol-Myers Squibb. "Our
performance in 2014 across brands and geographies, continued innovation
and productivity in R&D and investments in business development
opportunities reflect the strength and execution of our BioPharma
strategy, and positions us well for 2015," Andreotti said.

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Advertising and product promotion spending decreased 16% to $213
million in the quarter.

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Research and development expenses increased 24% to $1.2 billion in the
quarter, primarily due to timing.

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The effective tax rate was 145% in the quarter, compared to 15.4% in
the fourth quarter last year. Income taxes in the current quarter
include net tax benefits attributed to specified items and the R&D
credit for the full year 2014.

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The company reported net earnings attributable to Bristol-Myers Squibb
of $13 million, or $0.01 per share, in the quarter compared to $726
million, or $0.44 per share, a year ago. The results in the quarter
include an after-tax $0.28 per share impact of a non-cash charge
resulting from the transfer of $1.5 billion of U.S. pension
obligations to Prudential.

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The company reported non-GAAP net earnings attributable to
Bristol-Myers Squibb of $771 million, or $0.46 per share, in the
fourth quarter, compared to $842 million, or $0.51 per share, for the
same period in 2013. An overview of specified items, including the
pension-related charge mentioned above, is discussed under the "Use of
Non-GAAP Financial Information" section.

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Cash, cash equivalents and marketable securities were $11.8 billion,
with a net cash position of $4.0 billion, as of December 31, 2014.

FOURTH QUARTER PRODUCT AND PIPELINE UPDATE

Bristol-Myers Squibbs global sales in the fourth quarter included Eliquis,
which grew by $210 million, Yervoy,
which grew 41%, Orencia,
which grew 12%, Sprycel,
which grew 9%, and Daklinza and Sunvepra, which had
combined sales of $207 million.

Opdivo

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In January, the company announced that an open-label, randomized Phase
3 study evaluating Opdivo, a human programmed death receptor-1
(PD-1) blocking antibody, versus docetaxel in previously treated
patients with advanced, squamous cell NSCLC was stopped early because
an assessment conducted by the independent Data Monitoring Committee
concluded that the study met its endpoint, demonstrating superior
overall survival in patients receiving Opdivo compared to the
control arm. The company will share these data - which for the first
time indicate a survival advantage with an anti-PD-1 immune checkpoint
inhibitor in lung cancer - with health authorities.

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In December, the U.S. Food and Drug Administration (FDA) approved Opdivo
injection for intravenous use. Opdivo is indicated for the
treatment of patients with unresectable or metastatic melanoma and
disease progression following Yervoy and, if BRAF V600 mutation
positive, a BRAF inhibitor. Opdivo received accelerated
approval for this indication based on tumor response rate and
durability of response. Continued approval for this indication may be
contingent upon verification and description of clinical benefit in
the confirmatory trials.

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In December, at the American Society for Hematology (ASH) annual
meeting in San Francisco, the company announced positive results from
a cohort of patients in CheckMate -039, its ongoing Phase 1b trial
evaluating Opdivo in patients with relapsed or refractory
hematological malignancies (n=23). Results showed high levels of
response in patients with relapsed or refractory classical Hodgkin
lymphoma, with an overall response rate of 87% (n=20) and stable
disease in 13% (n=3). The findings were published in The New
England Journal of Medicine (NEJM).

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In November, at the Society for Melanoma Research international
congress in Zurich, Switzerland, the company announced results from
CheckMate -066, a Phase 3 randomized, double-blind study, comparing Opdivo
to the chemotherapy dacarbazine in patients with treatment-naive
BRAF wild-type advanced melanoma (n=418). The study met the primary
endpoint of overall survival with the median overall survival not
reached for Opdivo vs. 10.8 months for dacarbazine. The
one-year survival rate was 73% for Opdivo vs. 42% for
dacarbazine and there was a 58% decrease in the risk of death for
patients treated with Opdivo (hazard ratio for death: 0.42,
P<0.0001). This survival advantage was also observed in Opdivo-treated
patients who are positive or negative for programmed death ligand-1
(PD-L1). The findings were published in NEJM.

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In October, at the Chicago Multidisciplinary Symposium on Thoracic
Oncology, the company announced results from CheckMate -063, a Phase 2
single-arm, open-label study of Opdivo administered as a single
agent in patients with advanced squamous cell NSCLC who have
progressed after at least two prior systemic treatments. Sixty-five
percent of patients studied (n=117) received three or more prior
therapies. With approximately 11 months of minimum follow-up, the
objective response rate - the studys primary endpoint - was 15% (95%
CI = 8.7, 22.2) as assessed by an independent review committee using
RECIST 1.1 criteria and the median duration of response was not
reached. The estimated one-year survival rate was 41% (95% CI = 31.6,
49.7) and median overall survival was 8.2 months (95% CI = 6.05,
10.91).

Eliquis

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In December, at the ASH meeting in San Francisco, the company and its
partner, Pfizer, announced results of the first human study evaluating
the reversal of the anticoagulant effect of Eliquis by 4-factor
prothrombin complex concentrates in healthy subjects. The study
results demonstrated that both Sanquins Cofact, a heparin-free
formulation, and CSL Behrings Beriplex(R) P/N, a formulation
containing heparin, reversed the steady-state pharmacodynamic effects
of Eliquis.

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In November, the company and its partner, Pfizer, along with Portola
Pharmaceuticals announced results from the first part of the Phase 3
ANNEXA(TM)-A studies for Andexanet alfa, Portolas
investigational anti-Factor Xa agent to reverse the anticoagulant
effect of Eliquis. Andexanet alfa produced rapid and nearly
complete reversal (approximately 94%, P<0.0001) of the anticoagulant
effect of Eliquis in healthy volunteers ages 50-75. The data
were presented at the American Heart Association Scientific Sessions
in Chicago.

Daclatasvir

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In November, the FDA issued a Complete Response Letter regarding the
New Drug Application (NDA) for daclatasvir, an NS5A complex inhibitor,
in combination with other agents for the treatment of hepatitis C
(HCV). The initial daclatasvir NDA focused on its use in combination
with asunaprevir, an NS3/4A protease inhibitor. Given the withdrawal
of asunaprevir in the U.S. by Bristol-Myers Squibb in October, the FDA
is requesting additional data about daclatasvir in combination with
other antiviral agents for the treatment of HCV. Daclatasvir is
marketed as Daklinza in Japan and the European Union.

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In November, the company announced results from the landmark ALLY
trial investigating a ribavirin-free 12-week regimen of daclatasvir in
combination with sofosbuvir in genotype 3 HCV patients, a patient
population that has emerged as one of the most difficult to treat. The
data, which showed sustained virologic response 12 weeks after
treatment (SVR12) in 90% of treatment-naive and 86% of
treatment-experienced patients, were presented at the annual meeting
of the American Association for the Study of Liver Diseases (AASLD) in
Boston.

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In November, also at AASLD, the company announced data from the UNITY
trial program investigating a 12-week regimen of its all-oral
daclatasvir-based TRIO regimen - a fixed-dose combination of
daclatasvir with asunaprevir and beclabuvir - in a broad range of
patients with genotype 1 HCV. In the UNITY-2 study, which evaluated
cirrhotic patients, 98% of treatment-naive and 93% of
treatment-experienced cirrhotic patients receiving TRIO with ribavirin
achieved SVR12 and 93% of treatment-naive and 87% of
treatment-experienced cirrhotic patients receiving TRIO without
ribavirin achieved SVR12. In the open-label UNITY-1 study, which
evaluated the TRIO regimen without ribavirin in treatment-naive and
treatment-experienced non-cirrhotic patients for 12 weeks with 24
weeks of follow-up, 91% of patients achieved SVR12 and 92% of
treatment-naive patients and 89% of treatment-experienced patients
achieved cure without the use of ribavirin.

Orencia

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In November, at the American College of Rheumatology annual meeting in
Boston, the company announced results from several new sub-analyses of
the Phase 3b AVERT trial investigating the use of Orencia plus
methotrexate (MTX) in biologic and methotrexate-naive citrullinated
protein (CCP)-positive early moderate to severe rheumatoid arthritis
(RA) patients. The subanalyses showed that first-line treatment with Orencia
plus MTX resulted in patients with early RA achieving significantly
higher rates of stringent measures of remission; reduced the
development of anti-CCP antibodies, an indicator of more severe,
persistent, and erosive disease in patients with early rapidly
progressing RA; improved synovitis and osteitis scores at 12 months;
and improved joint erosion scores at both 12 and 18 months, compared
to MTX alone.

FOURTH QUARTER BUSINESS DEVELOPMENT UPDATE

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In January, the company announced a clinical trial collaboration
agreement with Seattle Genetics to evaluate the investigational
combination of Opdivo with Seattle Genetics antibody drug
conjugate Adcetris(R) (brentuximab vedotin) in two planned
Phase 1/2 clinical trials. The first trial will evaluate the
combination of Opdivo and Adcetris(R) as a potential
treatment option for patients with relapsed or refractory Hodgkin
lymphoma, and the second trial will focus on patients with relapsed or
refractory B-cell and T-cell non-Hodgkin lymphomas, including diffuse
large B-cell lymphoma.

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In January, the company announced a clinical trial collaboration with
Lilly to evaluate the safety, tolerability and preliminary efficacy of Opdivo
in combination with Lillys galunisertib (LY2157299), a TGF beta
R1 kinase inhibitor. The Phase 1/2 trial will evaluate the
investigational combination of Opdivo and galunisertib as a
potential treatment option for patients with advanced (metastatic
and/or unresectable) glioblastoma, hepatocellular carcinoma and NSCLC.

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In January, the company announced a worldwide research collaboration
with the California Institute for Biomedical Research (Calibr) to
develop novel small molecule anti-fibrotic therapies, and an exclusive
license agreement that allows Bristol-Myers Squibb to develop,
manufacture and commercialize Calibrs preclinical compounds resulting
from the collaboration.

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In December, the company and its partner, Ono Pharmaceutical Co.,
Ltd., along with Kyowa Hakko Kirin Co., Ltd., announced a clinical
trial collaboration agreement to conduct a Phase 1 combination study
of Opdivo and mogamulizumab, an anti-CCR4 antibody. The study,
which will be conducted in Japan, will focus on evaluating the safety,
tolerability and anti-tumor activity of combining Opdivo and
mogamulizumab as a potential treatment option for patients with
advanced or metastatic solid tumors.

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In November, the company and Five Prime Therapeutics, Inc., announced
that they have entered into an exclusive clinical collaboration
agreement to evaluate the safety, tolerability and preliminary
efficacy of combining Opdivo with FPA008, Five Primes
monoclonal antibody that inhibits the colony stimulating factor-1
receptor. The Phase 1a/1b study will evaluate the combination of Opdivo
and FPA008 as a potential treatment option for patients with NSCLC,
melanoma, head and neck cancer, pancreatic cancer, colorectal cancer
and malignant glioma.

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In November, the company announced plans to construct a
state-of-the-art, large-scale biologics manufacturing facility in
Cruiserath, County Dublin, Ireland. The facility will produce multiple
therapies for the companys growing biologics portfolio and
significantly increase Bristol-Myers Squibbs biologics manufacturing
capacity.

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In November, the company and Galecto Biotech AB announced that the
companies, together with Galectos shareholders, have entered into an
agreement that provides Bristol-Myers Squibb the exclusive option to
acquire Galecto Biotech AB and gain worldwide rights to its lead asset
TD139, a novel inhaled inhibitor of galectin-3 in Phase 1 development
for the treatment of idiopathic pulmonary fibrosis and other pulmonary
fibrotic conditions.

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In October, the company and Lonza announced a multi-year expansion of
their existing biologics manufacturing agreement. Lonza will produce
commercial quantities of a second Bristol-Myers Squibb biologic
medicine at its mammalian manufacturing facility in Portsmouth, New
Hampshire.

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In October, the company and F-star Alpha Ltd. announced that the
companies, together with F-star Alphas shareholders, have entered
into an agreement that provides Bristol-Myers Squibb the exclusive
option to acquire F-star Alpha, and gain worldwide rights to its lead
asset, FS102. FS102 is a novel, Phase 1-ready human epidermal growth
factor receptor 2 (HER2)-targeted therapy in development for the
treatment of breast and gastric cancer among a well-defined population
of HER2-positive patients who do not respond or become resistant to
current therapies.

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Full-year gross margin as a percentage of revenues of approximately
74%.

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Advertising and promotion expense decreasing in the mid- to
high-teen-digit range.

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Marketing, sales and administrative expenses decreasing in the mid- to
high-single-digit range.

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Research and development expenses decreasing in the low-single-digit
range.

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An effective tax rate of approximately 19%.

The financial guidance for 2015 excludes the impact of any potential
future strategic acquisitions and divestitures, and any specified items
that have not yet been identified and quantified. The non-GAAP 2015
guidance also excludes other specified items as discussed under "Use of
Non-GAAP Financial Information." Details reconciling adjusted non-GAAP
amounts with the amounts reflecting specified items are provided in
supplemental materials available on the companys website.

Use of Non-GAAP Financial Information

This press release contains non-GAAP financial measures, including
non-GAAP earnings and related earnings per share information. These
measures are adjusted to exclude certain costs, expenses, significant
gains and losses and other specified items. Among the items in GAAP
measures but excluded for purposes of determining adjusted earnings and
other adjusted measures are: restructuring and other exit costs;
accelerated depreciation charges; IPRD and asset impairments; charges
and recoveries relating to significant legal proceedings; upfront,
milestone and other payments for in-licensing of products that have not
achieved regulatory approval which are immediately expensed; net
amortization of acquired intangible assets and deferred income related
to Amylin; pension settlement charges; significant tax events and
additional charges related to the Branded Prescription Drug Fee. This
information is intended to enhance an investors overall understanding
of the companys past financial performance and prospects for the
future. Non-GAAP financial measures provide the company and its
investors with an indication of the companys baseline performance
before items that are considered by the company not to be reflective of
the companys ongoing results. The company uses non-GAAP gross profit,
non-GAAP marketing, selling and administrative expense, non-GAAP
research and development expense, and non-GAAP other income and expense
measures to set internal budgets, manage costs, allocate resources, and
plan and forecast future periods. Non-GAAP effective tax rate measures
are primarily used to plan and forecast future periods. Non-GAAP
earnings and earnings per share measures are primary indicators the
company uses as a basis for evaluating company performance, setting
incentive compensation targets, and planning and forecasting of future
periods. This information is not intended to be considered in isolation
or as a substitute for financial measures prepared in accordance with
GAAP.

Statement on Cautionary Factors

This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
regarding, among other things, statements relating to goals, plans and
projections regarding the companys financial position, results of
operations, market position, product development and business strategy.
These statements may be identified by the fact that they use words such
as "anticipate", "estimates", "should", "expect", "guidance", "project",
"intend", "plan", "believe" and other words and terms of similar meaning
in connection with any discussion of future operating or financial
performance. Such forward-looking statements are based on current
expectations and involve inherent risks and uncertainties, including
factors that could delay, divert or change any of them, and could cause
actual outcomes and results to differ materially from current
expectations. These factors include, among other things, effects of the
continuing implementation of governmental laws and regulations related
to Medicare, Medicaid, Medicaid managed care organizations and entities
under the Public Health Service 340B program, pharmaceutical rebates and
reimbursement, market factors, competitive product development and
approvals, pricing controls and pressures (including changes in rules
and practices of managed care groups and institutional and governmental
purchasers), economic conditions such as interest rate and currency
exchange rate fluctuations, judicial decisions, claims and concerns that
may arise regarding the safety and efficacy of in-line products and
product candidates, changes to wholesaler inventory levels, variability
in data provided by third parties, changes in, and interpretation of,
governmental regulations and legislation affecting domestic or foreign
operations, including tax obligations, changes to business or tax
planning strategies which take into account assumptions about the
continued extension of the R&D tax credit, difficulties and delays in
product development, manufacturing or sales including any potential
future recalls, patent positions and the ultimate outcome of any
litigation matter. These factors also include the companys ability to
execute successfully its strategic plans, including its business
strategy, the expiration of patents or data protection on certain
products, including assumptions about the companys ability to retain
patent exclusivity of certain products, and the impact and result of
governmental investigations. There can be no guarantees with respect to
pipeline products that future clinical studies will support the data
described in this release, that the compounds will receive necessary
regulatory approvals, or that they will prove to be commercially
successful; nor are there guarantees that regulatory approvals will be
sought, or sought within currently expected timeframes, or that
contractual milestones will be achieved. For further details and a
discussion of these and other risks and uncertainties, see the companys
periodic reports, including the annual report on Form 10-K, quarterly
reports on Form 10-Q and current reports on Form 8-K, filed with or
furnished to the Securities and Exchange Commission. The company
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise.

Company and Conference Call Information

Bristol-Myers Squibb is a global biopharmaceutical company whose mission
is to discover, develop and deliver innovative medicines that help
patients prevail over serious diseases. For more information, please
visit www.bms.com
or follow us on Twitter at http://twitter.com/bmsnews .

There will be a conference call on January 27, 2015, at 9 a.m. EST
during which company executives will review financial information and
address inquiries from investors and analysts. Investors and the general
public are invited to listen to a live webcast of the call at http://investor.bms.com
or by dialing 647-788-4901, confirmation code: 23518879. Materials
related to the call will be available at the same website prior to the
conference call.